Cindy, an 18-year-old full-time student, has $3,400 interest income from a trust established by her grandparents. Cindy also earned $6,000 working at a part-time job. She lives at home with her parents and has no itemized deductions. Cindy’s parents are in the 33 percent marginal tax bracket.
a. What is Cindy’s taxable income and how much income tax does she owe? $
b. How would your answers change if Cindy were age 24? $